Investor not happy with company
Man not briefed fully on investment
A former school teacher, who believes he will never get his investment money, wants to warn prospective investors to stay away from Electio Investments, saying they do not offer financial advisory services as expected in terms of Financial Advisory and the Intermediary Services (FAIS) Act.
Raymond Sekwakwa, 55, of Soweto, told Consumer Line he wasn’t advised about potential problems when trying to cash his money and believes if he had been warned he would have made an informed decision before investing.
He said because the company was not registered with FAIS, he was unable to lodge a complaint with the financial provider’s ombud.
Before resigning from his job in 2014 Sekwakwa came across Electio Alternative Investments, which offers investments in metals.
Sekwakwa said he chose to invest his money for a year after Electio general manager Kyle Pillay told him he would get almost 19% returns on his investment.
He was convinced he had invested in a good product as metals are used for many popular products.
He said he was told China had a monopoly on rare earth metals and had no competitor. “I was told I was one of few people to own such an investment product, as it was unique,” Sekwakwa said.
He said his expectations were raised when he was told the investment could make millions if he kept them for a longer period.
Sekwakwa said he was assured he would get his money back whenever he decided to sell.
“This was irresistible as I wanted to improve the education of my children,” he said.
Though Sekwakwa was apparently told the product was used by Apple, MercedesBenz and other big companies he has not been able to sell or get his money back since 2015.
After investing R200 000 he was not given copies of the contract he concluded with Electio, Sekwakwa said.
All he has now is proof of payment and a statement, which he would only get on demand.
“At no stage did Pillay tell me that my investment would not be paid after a year, which was the condition of my investment,” Sekwakwa said.
He said had it been communicated to him that his money would be tied up for more than a year he would not have entered into the agreement. He was not given a copy of the agreement.
The only time he saw the terms and conditions which bind him for more than a year was when he engaged the service of an attorney in January, he said.
He was never given a chance to read the contract, nor was he told about a “cooling off ” period, he said.
He was shocked when he received a call from a person who told him he was calling from the Middle East to advise him that he could not cash his money as he had invested in a long-term portfolio. He was told he could only access his funds 10 years after the initial investment.
“I am now convinced that I might not get my money back as they have made a string of empty promises to me for the past two years. It is for this reason that I want prospective investors to be alert before they choose to invest with this company,” Sekwakwa warned.
Shaunita Singh, an accounts manager at Electio, gave Consumer Line a response their lawyers sent to the FAIS ombud in 2013, a year before Sekwakwa invested with them. No attempts were made to address Sekwakwa’s concerns as raised with Consumer Line.
The letter informs the ombud that the company was not in contravention of the FAIS Act.
Attached to the letter was another one that Pillay had sent to the National Consumer Commission in June 2016, telling them Sekwakwa’s matter was still being resolved.
The company promised that when a buyer was found to purchase Sekwakwa’s assets, he would be notified and paid his money.
Consumer Line
At no stage did they tell me that I would not be paid after a year